Investment in healthcare facilities has been labelled by one expert as the single biggest driver of property price growth, with homeowners in one key SA area set to win big in the coming years.
Nationwide there are 307 hospital and medical centre projects underway or proposed, each with works exceeding $100m.
Their combined value sits at more than $160bn.
Hotspotting Founder Terry Ryder said, nationally, he had never seen this level of infrastructure development at any one time.
“It’s unprecedented,” he said.
A flyover/ artist impression of the new Women’s and Children’s Hospital, Adelaide. Construction has begun on the $3.2 billion new Women’s and Children’s Hospital project – as new concept vision gives a fresh glimpse of how the world-class hospital will look. Supplied
“Medical infrastructure projects tend to have the greatest effect on property prices.
“Residential construction is much slower, and is being affected by a shortage of tradespeople, many of whom are working on infrastructure projects.
“Medical projects create big demand for property, because you can get 7 or 8000 staff working at them, especially if it’s a hospital.”
Of the top ten hospital projects expected to have the strongest impact on property markets, the Women’s and Children’s Hospital in Thebarton came in at number seven.
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The under-construction project will cost $3.2 billion, and is expected to be completed in 2030 or 2031.
According to the report, Thebarton’s property market, in which the hospital is situated, isn’t the only one set to benefit, with property values in Adelaide, Bowden, North Adelaide and Underdale tipped to rise.
Thebarton house values have climbed by an average of 14 per cent a year over the past five years, while North Adelaide unitshave shown the greatest price increase of 16 per cent a year over the same period.
Mr Ryder said the effect on demand for properties surrounding a medical hub was long-lasting.
“When it comes to a hospital, there are lots of jobs in building it, but also lots of jobs in running it,” he said.
A flyover/ artist impression of the new Women’s and Children’s Hospital, Adelaide. Construction has begun on the $3.2 billion new Women’s and Children’s Hospital project – as new concept vision gives a fresh glimpse of how the world-class hospital will look. Supplied
“That’s what sets it apart from other infrastructure.
“If you build a motorway, there are jobs in building it, but you don’t need people to run it.
“Medical projects have diversity of jobs too – from the cleaners, right up to the top medical specialists.”
LJ Hooker Mile End/Walkerville selling agent Thanasi Mantopoulos said he had already seen inquiry levels pick up in Thebarton as construction activity picked up.
“I’ve seen huge growth in there and the thing in Thebarton is you can still buy a house or a nice maisonette on a good block for a good price,” he said.
“There’s a lot of value there and the liveability index is off the charts.
Thanasi Mantopoulos of LJ Hooker Mile End/Walkerville.
“I’ve had a lot of inquiry in Thebarton and its surrounding suburbs specifically because of the new hospital.
“I think the number of properties to come on to the market in that area will probably go down now as people try and hold on to them until closest to its completion because they know they’ll get a better price for it.
“Those that can hold it will, and that drop in stock will drive demand and prices.”
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